Bain Capital has completed the fundraising of its third European fund, drawing commitments of €3.5 billion ($5.5 billion). That fund had an original target of €2.5 billion.
Bain Capital Europe now has 42 investment professionals in offices in London and Munich.
In related news, the firm is nearing the completion of fundraising for two additional funds – a core, global fund with a target of $10 billion and a separate limited partner co-investment fund with a target of $5 billion.
Combined with a debut Asia fund raised last year totalling $1 billion in commitments, Bain Capital now has roughly $20 billion in dry powder to deploy globally, according to a source close to the firm.
Last August, Bain Capital hit the fundraising trail with the goal of raising $10 billion for its tenth fund. The target for the core fund was only modestly larger than a fund closed in 2006 on $8 billion, supplemented by a $2 billion co-investment fund. A source close to Bain explained that the disproportionate growth of the follow-on co-investment vehicle was meant to reflect uncertainty over the size of future deal opportunities. LP co-investment funds are typically drawn from when the size of a deal requires the deployment of extra equity.
Bain Capital is one of the few private equity firms to charge carried interest exceeding 20 percent – Bain charges 30 percent. The firm maintains that the higher carry is, in part, to offset the expense of the human capital and other resources it deploys in support of its portfolio companies.